Card Range To Study

48 Cards in this Set

A contract that is EITHER written or oral. Both parties to the contract DECLARE THEIR INTENTIONS
Ex.) lease agreement for under 12 months

Expressed Contract

A contract that is neither written nor oral but put forth by actions.

Ex.) ordering a meal at a restaurant, you are implying that you will pay before leaving

Implied Contract

2 types of expressed contracts

Bilateral and Unilateral

I will do this and you will do that
Promise exchanged for a promise

ex.) standard real estate sales contract

Bilateral

I will do this if you will do that
Promise exchanged for a performance.

Ex.) salesperson bonus is offered by a broker

Unilateral

A promise not to act

Forebearance

Courts cannot enforce a contract that requires the law be broken

Lawful objective

A check written to the seller that is tendered with an offer to buy

Earnest Money

Although negotiable, the buyer's title policy is usually paid by the?

Seller

Although negotiable, a survey required by either the buyer or lender is usually paid by the?

Seller

Although negotiable, an appraisal of the property required by the lender is usually paid by the?

Buyer

Special provisions section of the contract that means the time limits in the contract should be strictly observed or the contract is voidable is?

Time is of the Essence

Entirely new offer

Counteroffer

1. Partial performance
2. Unilateral rescission: "i wont do this if you wont do that"
3. Sue for Specific performance
4. Sue for Money damages
5. Liquidated damages: earnest money is forfeited to the seller
6. Mutual rescission- both parties are innocent and cancel the contract

Breach of Contract- 6 Alternatives

A contract for the sale of real property whereby the seller does not convey title to the buyer until all of the sale price is paid

Installment Contract
(Contract for Deed or Contract for Sale)

1. Many borrowers lose their property to the seller after missing only one payment
2. The seller may not have all the rights promised to the buyer at the end of the payment period.
3. The contract is not recorded at the county clerk's office; no constructive notice is given to the public of ownership

Problems with Installment Contracts

1. Warranty deed given to buyer
2. Fee simple title given to buyer
3. Possession
4. Uses mortgage and deed of trust
5. Foreclosure process
6. Sale is recorded
7. Title policy or abstract is provided
8. time consuming repossession

The type of listing whereby two or more agencies/brokers have a listing on the same property is?

Open Listing

The type of listing whereby the broker is not paid a commission in the even the owner finds a buyer is an?

Exclusive Agency

The type of listing whereby a listing broker is paid the excess amount over an agreed price stated in the listing is?

Net Listing

LISTING = KEY TO WEALTH

LISTING = KEY TO WEALTH

Primary purpose of the Texas Real Estate Licensing Act is to?

PROTECT THE CONSUMER

1. Licensed Attorney
2. A public official during the course of their official duties
3. Auctioneer
4. FSBO- Property Owners (for sale by owner)
5. Apartment Managers/Leasing Agents on Site
6. Model Home Sales People
7. Cemetery Lot Salespersons

Exemption from Licensing

Saleperson-18 years old and RESIDENT

Broker- at least 4 years as a salesperson.

License Eligibility

Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.

Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.

A registered trademark owned by the National Association of Realtors for use by its members is?

Realtor

The making of statements a reasonable person would recognize as non-factual is called?

Puffing

The mixing of client's funds with an agent's personal funds is called?

Commingling

1. Universal Agency
2. General Agency
3. Special Agency

3 Types of Agencies

When broad powers are given to an agent to bind (OBLIGATE) the principal in matters of all kinds.

Ex.) Guardian or power of Attorney

Universal Agency

When power is given to an agen to BIND the principle in a specific matter.

Ex.) relationship between a broker and his/her salesperson

General Agency

When limited power is given to an agent to perform specific acts.

Ex.) Relationship between owner and listing broker

Special Agency

created when a broker accepts a listing

Fiduciary Relationship

1. Ground Absorbtion (leach field system)

2. Evaporating System

2 Types of Septic systems

1. Inform the buyer as to any possible defects
2. Allows the buyer to further examine the property
3. allows the buyer to make an informed decision
4. Protect the broker from non-disclosure lawsuit

Seller's Disclosure Notice

Texas law requires the broker to maintain a _____ for earnest money received by a potential buyer.

Trust Account

A term for anyone employed by or contracted with a principle broker is?

Sales Associate
(not a Licensing Category)

the discriminatory practice by a real estate agent of maneuvering a client from a minority group away from considering a home in a white neighborhood.

Steering

1.Salesperson
2. Broker

2 Levels of Licensing

is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.